Construction Business In General

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Lester Morrison
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1 PT TOTAL BANGUN PERSADA Tbk Investors Summit Ritz Carlton Pacific Place, th November Construction Business In General Premium pricing brings value to customers Customer satisfaction, hassle free Quality Timely delivery Higher entry barrier for large and high quality projects, only few companies qualified High fragmented (98,000 contractors exist in Indonesia, 1% of contractors contribute 60% of market revenue, but only 125 contractors are registered with AKI, with 15 companies being the largest) Multi Years Projects Revenue recognition by percentage of completion phase (Indonesian Accounting Standard/ PSAK) Projects are individually id priced 2 1

2 Cost Structure Mechanical & Electrical 30% Structure (30%): Concrete, Steel Bar, Formwork, etc. Cost Structure Finishing g( (30%): Floor Covering, Wall/Partition, Ceiling, Doors Preliminaries 10% Finishing 30% Structure 30% & Windows, Sanitair, etc. Mechanical & Electrical (30%): Plumbing, Fire Hydrant/Sprinkler, Elevator & Escalator, Gondola System, Electrical, Ventilation/Air Conditioning, Sound System, Fire Alarm, CCTV, Building Automation System, etc. Preliminaries (10%): Staff, Plants & Equipments, Site Supporting Facilities, General (Documentation Stationary, etc.), Administration (Insurance, Bonds, etc.) 3 Price Trend of Cement & Steel Price Movement Index (base 100%), Cement and Steel 150% 140% 130% 120% 110% 100% 90% 80% 70% 60% Period Cement Steel Nationwide, cement consumption in 2010 is expected to increase by 5%-10% from 42.3mln ton last year. 4 2

Continuously making profits during the whole 40 years operation, except in 1995.

3 PT TOTAL BANGUN PERSADA Tbk Pride and Excellence in Construction Established in 1970 Focus consistently in building construction. Specializes in premium building construction, i.e. high-end commercial, apartment & condominium, offices, shopping centers, universities, hospitals, religious centers, tv station, etc. Continuously making profits during the whole 40 years operation, except in One of Indonesia s largest building construction company, known for integrity, respect, fair dealing, quality, excellent customer service. Strong and prudent financial track record, healthy balance sheet, no bank loan. 5 Certifications 6 3

Certification SMKK3:1996 Occupational Safety &Health Management System The National Standard of Occupational Safety and Health is codified in a Regulation of the

7 Awards Received The Company participated in 2009 Construction Project Performance Competition, held by the Public Works Department and the National Construction

4 Certification SMKK3:1996 Occupational Safety &Health Management System The National Standard of Occupational Safety and Health is codified in a Regulation of the Ministry of Labor, No. 05/Men/1996, concerning occupational safety and health management system. 7 Awards Received The Company participated in 2009 Construction Project Performance Competition, held by the Public Works Department and the National Construction Services Development Board (LPJK), and received the following awards: Project performance award for Building Construction category First Place Winner: Regatta Apartment Project Construction category: buildings > 15 floors with multiple functions 8 4

Awards Received Second Place Winner: The Peak Jakarta Apartment

functions Third Place Winner: Riau Library Project Construction

complexity 9 Awards Received Winner of Indocement Awards 2010 2010

5 Awards Received Second Place Winner: The Peak Jakarta Apartment Project Construction category: buildings > 15 floors with multiple functions Third Place Winner: Riau Library Project Construction category: buildings < 15 floors with multiple functions and high complexity 9 Awards Received Winner of Indocement Awards Award from Indonesian Contractors Association: Pioneer of Commercial Building 10 5

GARDEN THE PAKUBUWONO RESIDENCES GADING PLUIT HOSPITAL GEDUNG TRANS TV KANTOR GUBERNUR LAMIN ETAM KANTOR BUPATI SANGATTA MASJID

6 Awards Received K3 Award From East Kutai Regency for zero accident achievement Zero Accident Award for Regatta Project from Governor of DKI Jakarta Best Contractor Award For K3 Throughout East Kutai Regency 11 PAST PROJECTS MENARA BANK MEGA THE PEAK PEARL GARDEN THE PAKUBUWONO RESIDENCES GADING PLUIT HOSPITAL GEDUNG TRANS TV KANTOR GUBERNUR LAMIN ETAM KANTOR BUPATI SANGATTA MASJID BERAU ISLAMIC CENTER - SAMARINDA STADION BONTANG GEDUNG PERPUSTAKAAN JAKARTA CITY TOWER RIAU APARTEMEN THE REGATTA KEMANG VILLAGE-JAKARTA 12 6

7 Projects Under Construction CENTRAL PARK - JAKARTA LIVING WORLD - SERPONG, TANGERANG MASJID RAYA - PADANG GRHA KEDOYA HOSPITAL WEST JAKARTA BINUS SERPONG 3 SERPONG, TANGERANG 13 Projects Under Construction SOVEREIGN SOUTH JAKARTA K- LINK TOWER - SOUTH JAKARTA ALLIANZ TOWER SOUTH JAKARTA 14 7

8 Projects Under Construction STADION MAGELANG EAST JAVA BANDARA BERAU EAST KALIMANTAN 15 Projects Under Construction TRANS STUDIO BANDUNG - WEST JAVA 16 8

410.000.000. As of October 2010, local and foreign investors comprised of 23.7% and 7.7% respectively. IPO price of Rp.

9 Projects Under Construction GREEN BAY NORTH JAKARTA 17 Performance In The Market The largest private construction company Listing on 25 July 2006 at the JSX Initial listing of shares. Company issued Bonus shares of Current outstanding shares As of October 2010, local and foreign investors comprised of 23.7% and 7.7% respectively. IPO price of Rp.345,-/share Listed on the Main Board, included in Kompas 100 Highest closing price stood at Rp.1000,- on July 25,

10 Revenue, Rp. Bio. 1,902 2,000 2,000 Q4-E: 429 1,731 Q3: 1, E Revenue Q4'10-Estimate t Value of Work Done Although revenue target for 2010 is Rp1.500 bio, the value of work done is around 30%-50% of revenue. 19 Revenue Mix Repeat/New Customers Revenue 2009 Revenue 3Q-10 Repeat 79% New 21% Repeat 72% New 28% Around 77% of Company s revenue came from repeat customers ( ) 20 10

Revenue Mix Private/Government Revenue 2009 Revenue

25% 21 Revenue Mix Project Classification Revenue 2009

Utilities 10% Education 8% High Rise Residential 32%

Office Office centre Religious 8% building Building 1%

11 Revenue Mix Private/Government Revenue 2009 Revenue 3Q-10 Private 78% Government 22% Private 75% Government 25% 21 Revenue Mix Project Classification Revenue 2009 Revenue 3Q-10 Religious Building 13% Shopping Centre 14% Utilities 10% Education 8% High Rise Residential 32% Utilities 12% Education 10% Shopping Industrial Hospital Office Office centre Religious 8% building Building 1% 32% building 14% 21% 8% High rise residential 11% Hospital 6% 22 11

12 Revenue Mix Project Location Revenue 2009 Revenue 3Q-10 Java-Bali 54% Kalimantan 23% Others 2% Java-Bali 61% Kalimantan 19% Others 3% Sulawesi 7% Sumatra 8% Sulawesi 13% Sumatra 10% 23 Newly Signed Contracts (IDR Bio) 1,800 1,494 1, E Q1 Q2 Q3 Q

13 Backlog As Of October 31, 2010 (In Million Rupiah) Outstanding Revenue Carry over Estimated Carry over OUTSTANDING WORKS (OW) Works 2009 to 2010 Revenue to 2011 (audited) 2010 OW Project obtained as of ,060, , , ,295 (0) OW Project signed in , , , ,068 0 OW Project signed in ,146, , , ,619 69,475 Amendment in 2010 from previous projects (130,218) - (130,218) (128,684) (1,534) New project signed in As Of September ,405,179-1,405, , ,142 Total Outstanding Works 4,165,544 Revenue Audited 1,722,126 Carry Over to ,443,418 Revenue Estimated * 1,451,336 Carry Over to ,082 * = Excluding Projects Signed After September Projects Prospect (Pipeline) At this moment, the company has not been awarded with these projects as the projects are in the tender stage. Management is still in the process of obtaining the work but decision has not been made. Contract Value is for estimation only, final figures may vary. Pipelines are very dynamic and they can change from time to time. As of October 2010, Exclude VAT No. SECTOR Est. Contract Value (IDR bio) 1 High Rise Residential 2,160 2 Office Building Education Utilities Hospital Religious Building Shopping Centre 80 8 Hotel 55 SUM 3,450 Around 79% of the above projects are private projects

14 Gross Profit Margin, % 12.41% 9.85% 5.98% Q Gross Profit Composition 2009 Q Q % 18% 5% 22% 47% 35% 40% 42% 73% GP 4% 4% > GP 10 % GP > 10 % GP 4% 4% > GP 10 % GP > 10 % GP 4% 4% > GP 10 % GP > 10 % 28 14

15 Profit 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Gross Profit Gross Profit Operating After JO Profit Pretax Profit Net Profit % 5.98% 2.86% 2.76% 0.91% % 9.85% 5.32% 6.02% 3.01% 3Q % 12.41% 6.55% 7.96% 4.99% 29 Net Profit, IDR bio Q: E Our previous Net Profit estimate for 2010 is Rp. 62 bio

16 ROE and ROA E ROE 3.90% 10.58% 12.85% ROA 1.30% 4.03% 4.84% 31 Balance Sheet Summary 3Q-10, Unaudited IDR Billion Q-10 Total Current Assets 1,160 1,118 1,280 Total Non Current Assets Total Assets 1,338 1,290 1,455 Total Current Liabilities Total Non Current Liabilities Total Liabilities Minority Interests Total Stockholders' Equity Total Liabilities and Stockholders' Equity 1,338 1,290 1,

17 P&L Summary 3Q-10, Unaudited IDR Billion 3Q-09 3Q-10 Unaudited Unaudited Revenue 1,355 1,071 Gross Profit Gross Profit After Joint Operation Operating Expenses Operating Profit Other Income (Loss) 8 15 Income Tax Net Profit Preserving Cash To Stay Afloat Cash & Cash Equivalent, Rp. Bio Q-10 Prudent cash management & cash position at all time Improving collection management No bank-loan Stand by credit facility amounted to Rp76 bio Working capital through internally generated cash Preservation against liquidity idit problem, other business opportunities

18 Subsidiary PT Total Bangun Persada Tbk (Company) founded a subsidiary named PT Total Persada Development (TPD) with property as its main business. TPD is 99% owned by the Company. Initial investment to set up the Company is Rp50bio, originated from internal cash. The first project is a condotel in Tanjung Benoa, Bali, which is currently in valuation and design stage. The mock up unit could be seen in Grand Indonesia Jakarta currently. Presales of the units has just started, while construction is estimated to take around 18 months, starting March TPD is expected to contribute net profit of Rp8-10 bio in 2011 for the Company. 35 Estimate IDR Billion 3Q Est 2011 Est Revenue 1,071 1,500 1,700 Net Profit (PT Total Bangun Persada Tbk) Profit From Property (PT Total Persada Development-Subsidiary) New Sign Contract 1,405 1,800 1,800 Note: Value of Work Done is around 30%-50% larger than Revenue and larger than New Sign Contract. Revenue and Net Profit growth target is around 15%YoY

19 Summary Quality is our main priority Remain focus in construction of high quality building Human Resources reflect m-total character Innovation and Commitment is the success key factor Seek opportunity prudently 37 19

PT TOTAL BANGUN PERSADA Tbk

PT TOTAL BANGUN PERSADA Tbk Pride & Excellence In Construction FY - 2014 PT Total Bangun Persada Tbk Established in 1970 Focus consistently in building construction. Specializes in premium building construction